has created a joint-venture with two Chinese companies to sell mutual funds and other financial products.
The newly formed CCB-Principal Asset Management Company
will be 65 percent owned by the Chinese Construction Bank, 25 percent by the Principal and 10 percent by China Huadian Group. The Chinese Securities Regulatory Commission still has to approve the joint venture.
"With CCB's strong brand name and extensive distribution network of nearly 15,000 branches, the bank controls approximately 15 percent of mutual fund distribution in China, which will be invaluable to our joint venture as we seek to deliver mutual funds and potentially other financial services to the Chinese public," said J. Barry Griswell, chairman and chief executive officer of Principal.
Rex Auyeung, senior vice president of Principal's Asia operations, estimated that the Chinese mutual fund market had $40 billion in assets under management in 2004.
Stay ahead of the news ... Sign up for our email alerts now